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India Details EU Trade Pact With Phased Auto Tariff Cuts

Officials say the calibrated approach protects local makers, luring new European capital.

Overview

  • Government officials, speaking Tuesday at a FICCI conference in New Delhi, outlined a quota-based plan to cut import duty on up to 250,000 European cars to 10% from 110%.
  • The auto terms are phased over time to shield Indian manufacturers, and officials expect lower prices for imported European models as the cuts roll in.
  • The Commerce Ministry said the pact is designed to draw investment into India and expand domestic car production linked to European supply chains.
  • Social Security Agreements with EU members now cover 14 countries, with seven under negotiation and six planned, which prevents double pension payments for Indian professionals on short stays.
  • Industry leaders said the EU takes about 12% of India’s merchandise trade and urged fast follow-through so exporters, small firms, and service providers see gains when the deal, expected next year, takes effect.